What are calls and puts?
A “call” is an option that gives the option buyer the right (without obligation) to purchase a futures contract at a certain price on or before the expiration date of the option for a price called the premium, determined in open outcry trading in pits on the trading floor. A “put” is an option the gives the option buyer the right (without obligation) to sell a futures contract at a certain price on or before the expiration date of the option.
